A Rehoboth referendum that could leave town government in tatters is two weeks away.

The townwide election on July 15 from 7 a.m. to 8 p.m. has a single question: whether to fund a $1.7 million Proposition 2½ override to fund a deficit in the Rehoboth operating budget for fiscal 2015.

Signs have started sprouting up on front yards throughout town telling voters, “Let’s invest in Rehoboth!” or “Override Yes! Every Vote Counts!” But there are also signs, including several located directly across the street from Palmer River Elementary School, telling voters, simply, “Vote no on 2½ override.”

Tony Palms said that to him, the idea of voting against this Proposition 2½ override would be “insane.” Palms said without the override, town government would be virtually non-existent and property values in town would go down.

“It’d be crazy not to pass it,” said Palms, sitting on his riding lawn mower. “In terms of town services, it would severely limit them. The Building Department wouldn’t have enough funding to stay open. In my view, it would dramatically drop values in the town and would hurt the market of houses in town. It’s just ridiculous.”

The deficit was caused after voters at Town Meeting in May supported members of the Dighton-Rehoboth School Committee to finance the school budget at $14.9 million, while the Rehoboth Finance Committee recommended a state minimum $13.1 million. Members of the School Committee are now working as part of a group called “Rehoboth Community Supporters,” to promote the Prop 2½ override vote, with public information meetings scheduled this week and next week.

Part of the reason for the school spending increase, amounting to a 4.8 percent more than the previous year, was a correction of a long-standing $1.2 million error in the formula to calculate school assessments for the towns which favored Rehoboth for years. The rest of the $1.7 million was for a variety of school budget increases.

Town Meeting participants voted not to make the school budget increase contingent on a Proposition 2½ override, and by state law the town can not alter its school spending now, town officials said. Finance committee members pointed out that the $1.7 million represents a large chunk of nearly $7.3 million in non-school expenses. The process left some voters with a sour taste in their mouths.

Palms, who bought a home on Bay State Road in 2006, said that it’s time to move past the political infighting surrounding the situation and vote in favor of what’s best for the town.

“If we can get beyond the political agendas and really think about our investment in our homes, and the community and the families, then I hope we can make the right choice,” he said.

But the anti-tax sentiment of a segment of Rehoboth’s population has some town leaders concerned that the town’s government could be decimated by a vote against the override, with widespread layoffs and sweeping cuts to town services. One selectman called the situation “urgent” for the future of Rehoboth town government.

“I feel like it’ll be a close vote,” said Selectman Dave Perry. “The mood I feel is about a 50-50 shot. There is a certain segment that just doesn’t want taxes to go up. … It’s extremely important. This is not a matter-of-fact kind of thing. It’s absolutely necessary. That’s how urgent this is.”

Perry said that many people realize that the Prop 2½ override is required, and for others it just takes a little explaining about why the override is now needed after what happened at the May Town Meeting.

The Rehoboth Community Supporters, which has a website at www.yesrehoboth.org, is holding public meetings throughout the week to promote the override and to answer any questions about the vote.

Tonight, the group is holding an information session at 7 p.m. at the Blanding Library. On Wednesday, another information session is scheduled for 10 a.m. at the Rehoboth Senior Center. The last information session will take place at the Rehoboth Board of Selectmen meeting at 7 p.m. on Monday at the Senior Center, the group said.

Tiffany Bartholomew, a School Committee member who is helping to organize Rehoboth Community Supporters, said that the assessment problem that came to light earlier this year complicated the budget situation. But Bartholomew said it was important to get funding for the school system secured and also to maintain town services.

“I became involved when I realized the potential risks to the quality of services provided at both the school and town level,” Bartholomew said. “Unfortunately our revenue has not kept pace with necessary expenses, prompting the need for an override vote. … Rehoboth has been a fiscally responsible community with disciplined spending and I expect this will continue to be our tradition even after this successful passage of Proposition 2½.”

Rehoboth Selectman Joseph Tito said that it’s important to get as much information out about the vote as possible, so voters don’t think it’s just an unnecessary tax increase.

“Get the facts,” Tito said. “Call me. Call Town Hall at any time with any questions. … I think the informed voter will see how important this is for the town.”

Fellow Selectman Michael Costello said that he knows there is a contingent of Rehoboth voters who will oppose any tax increases no matter what. But Costello said this year there are special circumstances that were out of the Board of Selectmen’s control, and there needs to be some understanding.

“They are out there,” Costello said. “There are mindsets out there thinking we are going to just come up with the money. We are not going to come up with the money without making serious cuts that affect everyone in town, and definitely will result in layoffs. Programs like the Senior Center would be closed, the library (would be) closed and the Town Hall would be operational for probably two days a week. … With all (the) cuts mentioned, we are not even close.